The OPUS Group six-month result to June 30 reveals that its operational restructuring plan has delivered a $4.67 million profit after tax on revenue of $55,531,000. CEO Cliff Brigstocke says a debt-free balance sheet will allow a clear focus on core business, while strong cash flow generation will enable the implementation of a $3.9 million capital expenditure program.
The company’s partnership with Hong Kong listed 1010 Printing Group, which holds 62% majority shareholding, has been instrumental in the turnaround. OPUS is now looking to working closely with the 1010 Group on a wide range of initiatives to further improve the businesses.
“These include significant procurement opportunities where we can leverage 1010 Group’s substantial buying power,” commented Brigstoke. “This also extends to our customer offering where we have introduced solutions that include the ability to combine China, Australia, Singapore and New Zealand production.”
OPUS also plans to exit the New Zealand outdoor media business with the conditional sale of Omnigraphics.
Brigstocke said the Group still faces the challenges of margin erosion and rising costs of material brought about by the depreciation of the Australian dollar which in most cases, cannot be passed onto customers.
“However, management is optimistic of the future prospects of the Group. Each of our businesses has strong underlying fundamentals which with the Group free of the shackles of a high debt load and having completed an operational restructuring, have started to produce benefits for customers and shareholders.”
OPUS’ executive chairman, Richard Celarc says: “It is rewarding to see the benefits now flowing from the hard work all of our team have put into our plan. We are now ‘back’ and fully focused on the future. There is much to be done, however and we are all focused on what is required to ensure our results can be maintained. We have returned, as promised, to a much more hands on approach, which is a proven formula in many ways and how we used to operate before our public listing.
“Our businesses have a great niche and are leaders in their field and we will continue to support each business to drive value and growth.
“We are very excited with the many opportunities in front of us and it has been very rewarding to work alongside 1010 Group who have provided great support for our plan. Together, we have identified many complementary aspects of our businesses.
“We remain engaged as a local supplier with a long-term outlook and ongoing investment; it gives me great pleasure to announce that we have approved a range of Capex initiatives to the value of $3.9m across all divisions. These projects aim to improve our efficiencies, reduce costs and improve our speed to market.”